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The European General Court has more than halved a 2008 fine incurred by Sasol Wax for its involvement in the European paraffin wax cartel.
Sasol Wax’s penalty of €318.2-million, said at the time to be the biggest fine imposed on a South African company, was reduced by €168.22-million to €149.98-million.
In October 2008, the European Commission (EC) ruled that Sasol Wax, together with eight other producers, had operated a cartel between 1992 and 2005 and had fined the participants a collective €676-million for the infringement.
For its role as the supposed leader of the cartel – which was also reported to include Repsol, of Spain; ExxonMobil, of the US; ENI, of Italy; Tudapetrol, of Germany; Hansen & Rosenthal, of Germany; MOL of Hungary; RWE, of Germany; and Total, of France – Sasol received the highest fine.
Engineering News previously reported that Shell had also participated, but had received full immunity under the EC’s 2002 Leniency Notice, for being the first company to come forward with information about the cartel.
Sasol viewed the fine, which was paid in full in January 2009, as excessive and had applied to the European General Court, in Luxemburg, for a reduction of the fine.
Sasol, which said it was unaware of any cartel activity, had in 1995 became a co-shareholder in an existing Germany-based wax business owned by the Schümann group, before acquiring the remaining 50% in 2002.
Sasol would account for the reduction as a post balance sheet adjusting event, with the effect of the reduced fine accounted for in Sasol’s 2014 financial year income statement.
The EC had the right to appeal the decision.